Nonmarket Production Is Not Counted in GDP Because These Activities

question 56

Multiple Choice

Nonmarket production is not counted in GDP because these activities:

• A) are not priced.
• B) are considered intermediate goods.
• C) do not contribute to economic activity.
• D) happen inside the home.

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Definitions:

Consideration

The value (such as money, goods, or services) that is given by one party to another in exchange for a contractual promise.

Consumer Lease

An agreement in which a consumer agrees to rent a good, service, or property for personal, family, or household use for a specified period.

Unconscionability

A term referring to an agreement that is so one-sided or unfair that it shocks the conscience and is therefore unenforceable under the law.

Finance Lease

A type of lease arrangement where the lessee is considered the de facto owner of the leased asset, being responsible for maintenance and other associated costs, and typically involves commercial equipment or vehicles.